The number of real estate transactions for an amount greater than 3 million euros, considered luxury, reached 8,000 last year, which represents an increase of 55% compared to 2021 and 100% compared to 2019, motivated in good partly due to the interest of foreign buyers, according to a report by the specialized firm Hiscox.

When X-raying the profiles of international buyers, Hiscox does not report the number of sales of each one of them, but it does offer a classification in which the British, Germans and French occupy the first three positions. The Russians are also part, along with Latin Americans and Chinese, of the most active nationalities, although after the invasion of Ukraine they are in retreat.

“The Russian buyer of the luxury segment has not only stopped new real estate investments in Europe as a result of the sanctions imposed by the EU and the devaluation of the ruble, but has also begun to sell its properties in Europe to obtain liquidity after the bank blockade “, the report states.

However, Hiscox affirms that on the Costa del Sol and on the Catalan coast there is some movement of Russian investors. Meanwhile, US and Middle Eastern buyers are gaining ground in the market as a whole.

The luxury segment accounts for close to 5% of the total Spanish market and prices have increased between 10% and 20% since 2019. Brexit, the war in Ukraine and the pandemic are the three factors that have affected it the most in recent years, although “for the next few years the expectation is that prices in luxury housing continue more or less stable”.

Two other aspects that Hiscox highlights are the tax on large fortunes, which “is already causing some large Spanish estates to be thinking of transferring their tax residence to other countries”, and the possible withdrawal of golden visas, of which benefited since 2013 not only Latin American citizens, but also Russians and Chinese.

In Spain, the report states, there are 40,295 homes for sale with prices above one million euros concentrated in four areas. Malaga has 23%, compared to 22% for the Balearic Islands and 12% for both Madrid and Barcelona. These four provinces concentrate 70% of all available properties above one million euros, and 80% when the figure exceeds three million.

Alicante is the fifth province with the most housing prices above a million euros, with 10.6%, followed by Girona with 5.5%. The classification is completed by Santa Cruz de Tenerife (2.2%), Cádiz (2.1%), Valencia (1.7%), Las Palmas (0.8%), Granada and Vizcaya (0.7% in both cases).

Hiscox also ensures that the luxury home buyer is getting younger. There is what they call a “generational change”. “In just a few years, in 2025, millennials and generation Z will already represent 60% of the luxury market,” he says.